Columbia Threadneedle Investments

Small wonder: The Case for Global Small Cap

Author: Andrew Harvie, Client Portfolio Manager, Global Equities

Higher interest rates and the spectre of recession mean the outlook for equities is uncertain.
Such an environment is seen as particularly difficult for smaller companies, which are typically more economically sensitive.
However, the small cap market offers exposure to quality global companies with diverse earnings drivers and potential for resilience.
With a hugely concentrated large cap market and smaller companies trading at historically low prices, the asset class can provide a great opportunity for portfolio diversification at a compelling price
You can find the full article here.